YEREVAN, APRIL 13, NOYAN TAPAN. At the April 13 sitting, the Board of the Central Bank of Armenia (CBA) made a decision to raise the refinancing rate by 0.5% to 7%. To recap, prior to that - on February 16 and March 9 the CBA Board raised the rifinancing rate by 0.5% each time, fixing it at 6% and 6.5% respectively. According to the press service of the CBA, 0.8% inflation was recorded in March on February 2010, as a result of which the 12-month inflation declined by 0.6% as compared with the index of the previous month, making 8.8%. The Board said that due to the expansionary monetary and fiscal policies implemented in conditions of the recovery trends in the global economy and the current anti-crisis measures, the economic growth rates have exceeded the forecast index. As a result, the current inflation environment has mainly formed under the impact of the indicated factors and is in line with the CBA-envisaged directions. In the opinion of the CBA Board, the forecast inflation environment will remain under conditions of the current macroeconomic environment and the rise in the tariffs of municipal services in April, although the tendencies to the decline in 12-month inflation will continue. Taking into account the above mentioned facts, the Board continues to attach importance to the gradual toughening of the monetary and credit conditions in line with inflation curbing developments - aimed at forming real positive interest rates. In parallel with the anticrisis measures of the government, this will form realistic preconditions for inflation to return to its target interval.

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